Monsal energised by £14m investment
Renewable energy company Monsal, which turns waste into energy, has secured £14m of expansion capital from the Waste Resources Fund (WRF). The funding agreement will allow the Mansfield-based firm to expand and recruit in its sales, technical and engineering teams over the next year.
Monsal will receive an initial £4m from WRF, which will take an equity stake alongside Monsal’s management team and private equity investor Matrix Private Equity Partners. The fund has committed a further £10m, which will be used to establish and finance a new business.
The fund is managed by Four Winds Capital.
The funding will be used to expand Monsal’s core anaerobic digestion solutions business in the UK wastewater industry and provide infrastructure funding for bio-gas energy from waste projects.
The Monsal shareholders were advised by the Manchester office of European investment bank Altium Capital. Adrian Reed, director and head of cleantech and renewables at Altium, led the advisory team supported by Chris Hopwood and Nakul Mohandas.
In addition to the lead financial and structuring role provided by Altium, Monsal shareholders were advised by the Nottingham office of legal firm Eversheds LLP, led by Stephen Hill. FourWinds was advised by Shepherd and Wedderburn LLP, led by Guy Winter, and Tolvik Consulting provided commercial diligence.
Insider Comment:
The staggered investment into Monsal will undoubtedly signal a new era for the company. Not only will the funding allow the firm to recruit, it could eventually create a new business.
It is not the first time the company has undergone a significant period of evolution. In 2007, Monsal underwent a management buy-out, backed by private equity investor Matrix Private Equity Partners.
Ashley Broomberg, from Matrix Private Equity Partners, who is on the board of Monsal, said: “We’ve been very impressed with the progress Monsal has made over the last three years. The ability to provide project finance alongside market leading AAD technology will be a unique and winning formula as the market for AAD begins to really take off."
He added that the investment will be a “strong catalyst” in securing growth for Monsal.
